XL Group reported losses exceeding $1 billion for the 2017 third quarter, blaming Hurricanes Harvey, Irma and Maria for the results.
The net loss of $1.04 billion for Q3 amounted to negative-$4.06 per fully diluted share, compared to $70.6 million in net income, or $0.25 per fully diluted share in the 2016 third quarter.
XL Group, also known as XL Catlin, said that its natural catastrophe pre-tax losses were $1.48 billion, net of reinsurance, reinstatement and premium adjustments, and redeemable non-controlling interest. That massive hit added 58.8 points to the loss ratio, due largely to hurricanes Harvey, Irma and Maria, XL Catlin said. In the 2016 third quarter, XL Group booked $97.4 million in pre-tax catastrophe losses, which added 4.1 points to the loss ratio.
XL Group’s P/C combined ratio reached 146.9 for Q3, versus 93.1 over the same period in 2016. Broken down further, XL Group’s insurance combined ratio and reinsurance combined ratio for the 2017 third quarter were 132.5 and 172.5, respectively, compared to 96.3 and 86.5, respectively, in the 2016 third quarter.
“The natural catastrophes that mark the third quarter bring a unique devastation to those impacted and we continue the important work of helping our clients rebuild in these times of need,” XL CEO Mike McGavick said in prepared remarks.
McGavick noted that the events left behind a “significant” impact on XL Group’s financial results for the quarter. If you take those hurricanes away, however, McGavic said the insurer and reinsurer’s underlying results showed continued progress.
Here are some result highlights:
- XL Group’s insurance gross premiums written surpassed $2.3 billion for the 2017 third quarter and its net premiums written nearly reached $1.66 billion. Net premiums earned nit $1.68 billion. In the 2016 third quarter, insurance gross premiums written landed at $2.15 billion, and net premiums written were $1.6 billion. Net premiums earned for Q3 2016 were $1.65 billion.
- Reinsurance gross premiums written for the 2017 third quarter were $704.6 million, and net premiums written were just under $666 million. Net premiums earned surpassed $940 million. In the 2016 third quarter, reinsurance gross premiums written were $565.5 million, and net premiums written were $518.2 million. Net premiums earned came in at $778.2 million.
- Net investment income for the quarter was $202.8 million, versus $209.8 million in the 2016 third quarter.
Source: XL Group
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